If Chinese sharemarket collapses how much will ASX be affected?
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theasxgorilla
Problem solved... next bubble.
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Take a peek at Feb 28 and you may have some indication...on the other hand it doesn't take long these days for markets to say, 'been there, done that' and consequently under-react. Short answer, who knows!??!
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Perhaps we will see a test over the next few days. Nothing much happened when last Wed's policy change was announced, and this latest drop reflects more bad news in the form of new charges on investors.
My punt is that this is a local problem (reflecting potential local regulatory controls) which will not impact on overseas markets.
From Yahoo Finance:
(http://au.biz.yahoo.com/070604/33/19g45.html)
Chinese shares in sharpest drop in three months
Monday June 4, 2007, 6:27 pm
SHANGHAI (AFP) - Chinese share prices tumbled 8.26 percent Monday for the sharpest drop in more than three months on concerns the authorities will take more measures to cool a speculative frenzy, dealers said.
The market was reeling from a decision by the government in the middle of last week to triple stamp duty on stock transactions to 0.3 percent,and fears persisted about what other steps the authorities might have in store.
"There had been need for a correction and the increase in the stamp duty tax proved to be the straw that broke the camel's back," said Deng Hongguang, a Shanghai-based analyst with Orient Securities.
Monday's massive sell-off was the worst since February 27, when stocks plunged 8.84 percent in the biggest downturn in a decade and sparked off a round of turmoil on the global equity markets.
While the February drop triggered panic in stock markets around the globe, Monday's plunge in China shares met with a relatively muted response in Asian markets, with Australia and South Korea reaching new highs.
My punt is that this is a local problem (reflecting potential local regulatory controls) which will not impact on overseas markets.
From Yahoo Finance:
(http://au.biz.yahoo.com/070604/33/19g45.html)
Chinese shares in sharpest drop in three months
Monday June 4, 2007, 6:27 pm
SHANGHAI (AFP) - Chinese share prices tumbled 8.26 percent Monday for the sharpest drop in more than three months on concerns the authorities will take more measures to cool a speculative frenzy, dealers said.
The market was reeling from a decision by the government in the middle of last week to triple stamp duty on stock transactions to 0.3 percent,and fears persisted about what other steps the authorities might have in store.
"There had been need for a correction and the increase in the stamp duty tax proved to be the straw that broke the camel's back," said Deng Hongguang, a Shanghai-based analyst with Orient Securities.
Monday's massive sell-off was the worst since February 27, when stocks plunged 8.84 percent in the biggest downturn in a decade and sparked off a round of turmoil on the global equity markets.
While the February drop triggered panic in stock markets around the globe, Monday's plunge in China shares met with a relatively muted response in Asian markets, with Australia and South Korea reaching new highs.
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We will go back to 5000 for ASX
. If chinese market collapses, it means there is something wrong with their economy. And remember china import a lots raw material from australia. -> then BHP or RIO wont sell much stuff to chinese and BHP or RIO what would happen to ASX u all know the answer
professor_frink
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We will go back to 5000 for ASX
The Chinese market went from nearly 1800 in 2004 to 1000 in mid 2005. There was nothing wrong with their economy then, and our market wasn't affected at all.
How do you come up with 5000 for our market?
Kauri
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We will go back to 5000 for ASX
We are not travelling too badly so far, seeing as China has dropped by about 21% in a tad over a week now....
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The Chinese market went from nearly 1800 in 2004 to 1000 in mid 2005. There was nothing wrong with their economy then, and our market wasn't affected at all.
How do you come up with 5000 for our market?
Ah I mean if chinese market collapses
like 9/11 . Not about correction after chinese government change policy ^^ (raise interest rate, appreciate RMB, tax on share trading blah blah) to cool down their economy 
